Court battle looming for Malvern Hills College over property dispute

Malvern Hills College (incorporating the Malvern School of Art) (the ‘College’) has been providing adult education courses since 1886.  In 2020, after only four years of ownership, the College’s owner Warwickshire College Group (WCG), announced the College would be closing after falling student numbers, despite strong objections from the local community.

Back in 2008, Malvern Hills District Council placed a restriction on the College’s property title, specifying it can only be sold for educational purposes (specifically, for further and higher education provisions).   As the restriction would clearly significantly affect the value of the property, WCG asked for the restriction to be lifted.

A review by the Education and Skills Funding Agency in 2021 determined there was no “functional need” for a college in Malvern. The Council still refused to lift the restriction, leaving WCG with no option but to apply to the court.

Whilst the Council’s position is supported by campaign groups and the local MP, one of WCG’s main arguments was that it was their duty, as a charity, to maximise the value of any unused or surplus assets.

Restrictions such as these can cause considerable headaches to both buyers and sellers of land, as the majority of them are tied to the land rather than to the specific occupants.  There are several options available to those wishing to remove a restrictive covenant. These include:

• negotiating with the beneficiaries of the covenant for an express release (usually in return for payment);
• applying to modify or remove the restriction to the Upper Tribunal (Property Chamber); or
• obtaining a court declaration as to the nature or enforceability of the covenant (the route WCG opted for)

Our highly experienced Property Disputes team can help you understand your position when it comes to challenging restrictions and/or managing your property portfolio generally. Please do get in touch.